Ge Long Hui·2025-08-06 06:59Core Viewpoint - Cathay Pacific Airways reported a mixed performance in its interim results, with a slight increase in profit but lower-than-expected passenger yield, leading to a significant drop in share price [1] Financial Performance - The company reported a net profit attributable to shareholders of HKD 3.651 billion for the six months ending June, a year-on-year increase of 1.1% [1] - Earnings per share were HKD 0.567, and the company declared an interim dividend of HKD 0.20 per share [1] - Total revenue reached HKD 54.309 billion, reflecting a year-on-year growth of 9.49% [1] Passenger and Cargo Revenue - Passenger revenue amounted to HKD 34.208 billion, an increase of 14%, with passenger traffic measured in revenue passenger kilometers rising by 30% [1] - The total number of passengers carried in the first half was 13.6 million, averaging 75,300 passengers per day, which is a 27.8% increase [1] - Cargo revenue was HKD 11.141 billion, showing a modest increase of 2.2% [1] Challenges Faced - Hong Kong Express recorded a pre-tax loss of HKD 524 million, compared to a profit of HKD 66 million in the same period last year, primarily due to passenger avoidance of traditional destinations like Japan following earthquake rumors and the time required for new routes to mature [1] - The group indicated that Hong Kong Express will continue to face short-term challenges, although there has been a slight recovery in flight bookings to Japan, they have not yet returned to normal levels [1] Market Reaction - Following the announcement, Cathay Pacific's shares experienced a significant drop of nearly 11%, trading at HKD 10.72, with trading volume increasing to HKD 410 million [1] - Morgan Stanley noted that the company's performance in the first half did not meet market expectations due to lower-than-expected passenger yield [1]